Market model

Market model

The market model says that the return on a security depends on the return on the market portfolio and the extent of the security's responsiveness as measured by beta. The return also depends on conditions that are unique to the firm. The market model can be graphed as a line fitted to a plot of asset returns against returns on the market portfolio. This relationship is sometimes called the single-index model.

Market Model

The relationship between a security's performance and the performance of a portfolio containing it. The market model states that the security's performance is related its portfolio's performance according to its beta; that is, if a security has a beta of 2, and the portfolio rises 10%, then that particular security generally rises 20%. See also: Markowitz Portfolio Theory.
References in periodicals archive ?
The new electricity market model in Kazakhstan may improve the most efficient generators' earnings predictability, especially after the tariff freeze during 2016-2018, depending on the details of the first capacity auctions, Fitch Ratings said in a message.
Smiths Gore's Farmland Market Model estimates values will continue at similar levels for the forseeable future.
as well as announcements of major investments in energy which will open the market for private equity, all aimed at providing quality electricity to consumers and energy independence " said (FYR) Macedonia's Deputy Prime Minister for Economic Affairs Vladimir Peshevski.He stressed that the methodology of determining the price of electricity within the existing system is the responsibility of the ERC, but it is through the establishment of efficient markets electricity market model can bring electricity to be supplied at lower prices/ "I would not prejudice the advance in which direction the price will move.
The third method is extended market model method proposed by Schwert and Seguin.
AGGM looks forward to working alongside its new partners to tackle the challenges created by the new market model, Wagenhofer added.
Deputy Prime Minister Arkady Dvorkovich said that the current electricity market model is inefficient with regard to attracting private investment into the electricity industry, and the government is developing a new model which will help attract investment to the sector, Interfax reported yesterday (26 Sep).
Establishing the gas market model in the Danube region is a positive step for the safety of the energy supply in Central Europe, Hungarian MEP Andras Gyurk (EPP) said, on 20 June, during a conference held at the European Parliament to discuss the state of play of this model.
Property value relationships that tend to conform to a single market model.
The Carrefour Market model is already well-established internationally, and we saw an opportunity to introduce it to the GCC, which is a region with huge growth potential for the company," said Franck Rouquet, Carrefour's Supermarket Regional Manager for the UAE, Qatar, Oman and Kuwait.
The decision was reached "after careful consideration of capital market alternatives and analysis of the electronic market model, which provides added visibility to our investors," said Charles Gassenheimer, Chairman and CEO of Ener1.
Many Liverpool small firms still fail to trade outside the new market model for them, as well as a national ecommerce site.